Chapter 9

Refer to Figure 9-2. The size of the tariff on carnations is _____________.

$2 per dozen

Refer to Figure 9-1. Consumer surplus in Jamaica without trade is _____________.

$2,250

Refer to Figure 9-2. The amount of deadweight loss caused by the tariff equals ________.

$200

Refer to Figure 9-1. Without trade, consumer surplus is _______________.

$245

Refer to Figure 9-2. The amount of revenue collected by the government from the tariff is ______________.

$400

Refer to Figure 9-1. With free trade, producer surplus is ________________.

$472.50

Refer to Figure 9-1. The change in total surplus in Jamaica because of trade is ________________.

$625, and this is an increase in total surplus

Refer to Figure 9-1. With free trade, consumer surplus is _____________.

$80

Refer to Figure 9-1. As a result of trade, total surplus increases by ____________.

$97.50

Refer to Figure 9-2. As a result of the tariff, there is a deadweight loss that amounts to _____________.

D + F

Refer to Figure 9-2. The amount of government revenue created by the tariff is _________.

E

Refer to Figure 9-2. With trade and without a tariff, the price and domestic quantity demanded are _______________.

P.1 and Q.4

When a country allows trade and becomes an importer of a good, ___________________.

consumer surplus increases and producer surplus decreases

A tax placed on a good _________________.

creates a burden that is usually borne entirely by the sellers of the good

Refer to Figure 9-2. The imposition of a tariff on carnations _______________.

decreases the number of carnations imported by 200

Refer to Figure 9-1. With free trade, this country will ______________.

export 65 baskets

Refer to Figure 9-2. When a tariff is imposed in the market, domestic producers ______________.

gain by $300

A country has a comparative advantage in a product if the world price is ____________________.

higher than that country's domestic price without trade

Figure 9-1. The domestic country is Jamaica. Refer to Figure 9-1. With trade, Jamaica ___________.

imports 250 calculators

Refer to Figure 9-2. When the tariff is imposed, domestic consumers ____________.

lose by $900

A tariff is a _____________.

tax on an imported good

When a country allows international trade and becomes an importer of a good, ________________________.

the gains of the winners exceed the losses of the losers

When a nation first begins to trade with other countries and the nation becomes an importer of corn, ___________________________.

the nation's consumers of corn become better off and the nation's producers of corn become worse off

Trade enhances the economic well-being of a nation in the sense that ____________________.

trade results in an increase in total surplus

Suppose Haiti has an absolute advantage over other countries in producing oranges, but other countries have a comparative advantage over Haiti in producing oranges. If trade in oranges is allowed, Haiti ________________.

will import oranges